Every May, thousands of graduating students walk across the stage at Indiana colleges and universities, degrees in hand, ready to join the workforce and begin their careers. But in recent years, too many of them are walking out of Indiana to begin their careers elsewhere – and it’s a growing trend that is costing us.
Roughly 61% of college graduates with a bachelor’s degree remain and work in the state a year after graduation, and within five years, that number drops to nearly half. That is talent we trained and invested in—contributing to the economies of other states. While Indiana stands proudly at eighth in the nation for attracting students to the state’s higher education institutions, Indiana has one of the hardest jobs retaining that talent at 41st in the nation.
Retained graduates are the future of Indiana’s communities, workforce, and economy. When people stay, high-demand industries like tech, healthcare, and manufacturing gain a deeper hiring pool of skilled, educated Hoosiers. And it’s not only the hired Hoosiers who contribute; those grads plant roots. They start families, enroll their children in local schools, launch businesses, coach youth sports, serve on nonprofit boards, become community leaders, and build lives and legacies here.
That’s the kind of return on investment Indiana needs—and it starts by giving our graduates more reasons to stay. We’ve seen what works. Programs that connect students with local employers through internships, co-ops, and mentorships make a real difference. So does investing in quality of life: young people want vibrant communities with things to do, places to live, and ways to make an impact. Some of Indiana’s universities are already seeing retention rates of more than 90%, showing it can be done.
Last year, the Indiana Commission for Higher Education conducted statewide research on Hoosier perceptions and realities of higher education, and the findings were clear. Among the key barriers in pursuing higher education, a lack of career coaching and navigation rose as one of the top issues. Most students want to go to college, and they want to build a successful, self-sufficient life. They just need the support and connections through education to meaningful and relevant careers. Building that foundation early in college is fundamental in retaining those students post-graduation.
When we don’t retain graduates, we’re essentially subsidizing the talent pipelines of other states. Indiana faces an aging population and a shrinking pool of working-age residents. The demand for educated, highly skilled workers is higher than ever, and every graduate who leaves only deepens the talent shortage. The more we stem the leak of graduate migration, the more we boost Indiana’s innovation, productivity, and make Indiana more attractive to businesses looking to start, grow, or relocate. It also fuels a cycle of regional equality, especially in smaller communities, and grows local development across the state.
Reversing this trend will take a concerted effort across sectors, including education, government, community organizations, philanthropy, and most importantly, industry. We’ve seen more leaders throughout the state prioritize this issue, but that conversation needs more voices. Students are eager to connect with employers and explore career paths. Amongst many possible solutions, high schools, universities, and employers can continue to increase work-based learning and implement local internships into graduation requirements; employers and universities can use alumni to connect with current students; and policy supporting this work can contribute to large-scare reform.
The talent is right here in Indiana, and it is our job to keep it. Now is the time for all of us—employers, educators, policymakers, and community leaders—to step up, partner together, and create the kind of Indiana our graduates want to call home.